Group names interim CEO

LODI - The Lodi Boys & Girls Club did not renew the contract of Chief Executive Paul Bonell, ending the former banker's one-year tenure at the club after it was revealed he consulted for a federally indicted medical marijuana dispensary.

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By Keith Reid

recordnet.com

By Keith Reid

Posted Jan. 29, 2013 at 12:01 AM
Updated Jan 29, 2013 at 10:10 AM

By Keith Reid

Posted Jan. 29, 2013 at 12:01 AM
Updated Jan 29, 2013 at 10:10 AM

» Social News

LODI - The Lodi Boys & Girls Club did not renew the contract of Chief Executive Paul Bonell, ending the former banker's one-year tenure at the club after it was revealed he consulted for a federally indicted medical marijuana dispensary.

Bonell, 51, said he is disappointed in the decision - which was announced Saturday - but he "understands" and has "no regrets." The club's vice president of operations, Eddie Cotton, has been named interim CEO.

Bonell applied for the Boys & Girls Club position in February 2011 and was hired in October 2011 to replace longtime CEO Richard Jones, who retired. With 21 years of experience as president of Premier Credit Union in Stockton, Bonell was hired to help fix a dire financial situation that required a significant debt restructuring plan, he said. Bonell was able to help the board of directors work with creditors to restructure $180,000 in notes and increase the flow of community donations in his one-year tenure.

But he surprised the board of directors two weeks ago by publicly backing a Stockton man, Matt Davies, who is under federal indictment for operating a large-scale medical pot dispensary that cultivated thousands of plants and returned a multimillion-dollar profit. Bonell consulted for Davies starting from August until October 2011, when the dispensary was raided by federal drug enforcement officers.

Bonell told The New York Times that he is an advocate for Davies and talked about how the dispensary was working toward being fully compliant with the law and above board at every turn.

"I didn't keep it off my résumé because I thought it was negative," said Bonell, who began consulting in 2008 after leaving the banking industry for personal reasons. "It was an afterthought. I didn't list any of my consulting jobs."

Bonell said his role with the medical marijuana venture was in ensuring it was compliant with state law. His work is not under federal investigation, and he believes firmly that Davies' indictment is in conflict with statements made by the federal government that they would not prosecute medical marijuana users or operators in states where it has been made legal.

Still, Bonell said he believes the stigma attached to that activity was a big concern for the Lodi Boys & Girls Club board. Lodi has maintained a conservative outlook on medical marijuana. The City Council has banned dispensaries and is working on an ordinance to regulate cultivation by individual users.

"I think the association with the word 'marijuana' was a hurdle we could not overcome," Bonell said, noting that the Boys & Girls Club had the right to release him without cause.

Lodi Boys & Girls Club board of directors Chairman Marc Bregman would not comment Monday on Bonell's dismissal. He said he expects to issue a statement through the organization's national public relations office as early as today.

Bonell said he did help set a stronger financial foundation for the Boys & Girls Club than was in place before he took the job. He said he thinks the board and Cotton can thrive. He said he doesn't regret revealing his role in the dispensary.

"The one thing I didn't do was build a prudent reserve account. I was still working toward that," he said. "But they can take the momentum and continue to be a gem."

Cotton, 49, is the adopted son of retired Boys & Girls Club CEO Richard Jones. He has been a longtime Boys & Girls Club employee, including executive roles in Merced and Galt. He also served in Sacramento as an operations director. His role in Lodi for the past year has also been running day-to-day operations.

"I'm elated that I can continue the outstanding work that my dad did in this community," Cotton said. "We did not close one time last year, and I'm confident we can raise the kind of money we need to continue that and do what's best for the kids in this community."